Still solid, though the glory days are over

Finweek English Edition - - MARKET PLACE -

Listed in the US, Ap­ple is prob­a­bly one of the best-known listed shares any­where in the world. Re­cent re­sults show that iPhone sales are slow­ing for the first time ever. This isn’t the com­pany’s only is­sue, how­ever; it hasn’t had a de­cent prod­uct hit since the iPad and it’s fall­ing be­hind with re­gard to new in­no­va­tion of its ex­ist­ing de­vices.

But with a mon­ster cash pile, with over $150bn set aside for share buy­backs, a mas­sively cash­gen­er­a­tive busi­ness and trad­ing on a 10 times price-to-earn­ings ra­tio (P/E), it may no longer be the world’s tech leader but it is a great com­pany at a very cheap price. It re­mains one of the best brands of all time. Brands are im­por­tant and while they can fall, Ap­ple is very un­likely to do so. A large part of the Ap­ple brand is pre­mium pric­ing, which adds to its very large mar­gins. I think this share’s high-fly­ing days are over, but as a solid earner with great prod­ucts (even if not so in­no­va­tive any more), this tech gi­ant is worth con­sid­er­ing as a buy at cur­rent lev­els.

Ap­ple iPhone6

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